Summit State Bank · NASDAQ:SSBI
Summit State Bank — Q2 2024 Earnings Presentation
18 slides from Summit State Bank's earnings presentation, Sep 13, 2024
Slide 1: Form 8-K Current Report
FEDERAL DEPOSIT INSURANCE CORPORATION WASHINGTON, DC 20549 FORM 8-K CURRENT REPORT Pursuant to Section 12 or 15(d) of the Securities Exchange Act of 1934 Date of report (Date of earliest event reported): September 13, 2024 Summit State Bank (Exact Name of Registrant as Specified in Charter) Californ
Slide 2: Item 7.01 Regulation FD Disclosure
Item 7.01. Regulation FD Disclosure The Chief Executive Officer of Summit State Bank (the “Bank”) will make a presentation to institutional investors available online beginning September 16, 2024 using the slide presentation included as Exhibit 99.1 of this report. The information in this report (in
Slide 3: Item 9.01 Exhibits and Signature
recent Annual Report on Form 10-K filed with the Federal Deposit Insurance Corporation (“FDIC”) and those in any other public filing we may make with the FDIC. Item 9.01. Financial Statements and Exhibits (d) Exhibits: The exhibit list called for by this item is incorporated by reference to the Exhi
Slide 4: Exhibit Index
Exhibit Index Exhibit Description Number 99.1 Presentation slides as of September 13, 2024 4
Slide 5: 99.1 Presentation slides as of September 13, 2024
99.1 Presentation slides as of September 13, 2024 5
Slide 6: Summit State Bank Locations and Market Area Highlights
AN SUMMIT STATE BANK emer OIC Summit State Bank Locations Headquartered in Santa Rosa, CA Branch Locations * Santa Rosa Main Healdsburg Santa Rosa Montgomery Village Rohnert Park Petaluma Regional Small Business Lending Group * HQin Roseville, CA AN SUMMIT : Market Area Highlights Unemployment North
Slide 7: Leadership Team and Financial Trends
Leadership Team 165 Years of Collective Experience Financial Trends = Deposit rates repricing faster than $18,000 aoe loan portfolio has put downward $16.00 60% pressure on Net Interest Margin $14.00 Sad ultimately resulting in reduced $12,000 1208 Return on Average Assets $10,000 1.00% $8,000 080%
Slide 8: Loan Growth & Asset Quality
Loan Growth & Asset Quality 2019" 20207 se Loan Grout (Yor) 2021YE 2n Growth Ex PPP Vo) 2022¥E 2023VE 22802 enrnaca of Loans (Rhea 2024 Loan growth has slowed due to focus on quality and appropriate rate in a highly competitive market Strong Reserves (Allowance for Loans & Lease Losses - ACL) = ACL
Slide 9: Interest Income & Interest Expense Management
AN SUMMIT Interest Income & Interest Expense Management so [Net interest Margin (%) and Net interest income ($000) 2meor roma? 202003 2me0% 207101 ren1a2 202103 207308 2emaL 202202 22E3 A224 202301 209502 2m2m3 20R3QK 2OR10 202402 mms vetinterest income eemiet terest Maree NIM compression and Net In
Slide 10: Treasury Indexed CRE Rate Resets; Deposits & Loans Repricing
Treasury Indexed CRE - Contracted Rate Resets Treasury Indexed CRE - Contracted Rate Resets = Most Treasury Indexed CRE Loans sn.00 eno reprice every 5 years based on the e008 corresponding Constant Maturity 250000 : . 7.00% Treasury index po ne 00% s0c00 oe * Repriced rates reflect a snapshot of 10
Slide 11: Managing Infrastructure Costs in an Inflationary Environment
Managing Infrastructure Costs in an Inflationary Environment Expenses as a % of Assets 2019ve amore ronive pone rave AN SUMMIT 2 2.0% as 1.0% 05% = Expenses as a % of Total Assets has seen modest increases since the Pandemic = Expenses are actively managed yet are increasing due to inflationary pres
Slide 12: Loan Portfolio Composition
Loan Portfolio Composition Portfolio Product Types, % Commercia RealEstate nest Commercial RealEstate Onner Ocopied Total fem commercial CR Loan Real Estate-SFR Portfolio wutisamily Real state- Construction & Land Other Consumer & Lease Fancing a95% 24.7% Diversified Portfolio with Manageable Risk =
Slide 13: SBA Loan Program and Liabilities Trends
FE FE EEE SE SE SESS. SBA Loan Program PS NS ‘mE Retainad Balance (lft axis) FP PP LL Nor nterest income (5000) (right axis) PP SS See Dedicated Small Business Lending Group Created in 2017 Floating Rate Yields ~ 11.4% (July 2024 adjustment) Decrease in Non-Interest Income through: Lower SBA Loan Sa
Slide 14: Deposit Composition and Liquidity
AS SUMMIT Deposit Composition Interest Bearing Non- . wee Organic Deposit Growth a through Strong Relationship Practices Non-interest Bearing = Focused Local Deposit Growth cs <52500" 9% = 2Q2024 Average Cost of Deposits at 2.89% Ds >52508 AN SUMM\IT Focus on Liquidity and Quality as of Q2 2024 “ TI
Slide 15: Tangible Book Value Growth and Stock Value
Tangible Book Value Growth Tangible Book Value ($000) Bo,cve =" Tangible Book Value has improved pee 58% since 2018, or 11% annualized 70000 growth 65,000 i * Tangible Book Value growth has sowie [ | | solely been driven by retention of so00 [ earnings 2OISYE 2016YE_2OL7YE —-2018YE_2019"E —«2020YE20
Slide 16: Dividend Return and Stock Total Return
Dividend Return . Graph illustrates investment in 1 share Dividend Paid on 1 share since 2016 as of: 202402 $0.70 of stock beginning in 2016 ee = Dividend on Initial Investment $0.60 relates to the original purchase of 1 sos share soso " Additional Dividend Return of 37.5% goss is a result of: soso
Slide 17: Awards and Why Summit State Bank?
AN SUMMIT Awards and Accolades Ce aN) TA RNY) - —\ { ha Best Places to Work \\ ) / North Bay Business Journal \ f \ VW/é Corporate Philanthropy Award a\ j f SF Business Times \ é Hall of Fame s) J North Bay biz magazine ‘ vie WI Diversity in Business Why Summit State Bank? AN SUMMIT Experienced Exec
Slide 18: Forward-Looking Statements
Forward-Looking Statements This presentation includes looking within the ing of the “safe-harbor’ provisions of the Private Securities Litigation Reform Act of 1995, including forward-looking statements regarding our expectations and beliefs about our future financial performance and financial condi